Finding 1136984 (2024-002)

2024 – 002 – Internal Controls Over Compliance Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Opportunities for Persons with AIDS Assistance Listing Number: 14.241 Pass-Through Agency: City of Cleveland Department of Public Health Pass-Through Number: 5005SG2023-143 Award Period: June 1, 2023 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs. The Organization should have internal controls designed to ensure compliance with those provisions. Condition During our testing, we noted the Organization did not have adequate internal controls designed to ensure expenses reimbursed by the grantor were for allowable costs. Questioned Costs $982.71 Context During cash disbursements testing, one of seventeen expenses charged to the grant were not supported appropriately with payroll timesheets to show expenses were incurred by the organization for allowable costs. Certain expenses were included in grant reimbursement request that were not allowable. Cause In accordance with Aids Healthcare Foundation policy, the first timesheet for new hires is processed through a manual timesheet. Payroll processed both a manual and an electronic timesheet in ADP and payroll was overstated by the double payment. Effect The Organization was reimbursed for expenses that were not allowable. Repeat Finding No Recommendation We recommend the Organization design controls to ensure the payroll data is reviewed prior to being paid out and the support is reviewed in detail when submitting to the grantor for reimbursement. Views of Responsible Officials Aids Taskforce of Greater Cleveland, Inc. will continue to review payroll as internal controls state and ensure accurate reporting. Control with Payroll should be coordinated with Payroll Department ensuring duplicate payroll is not being processed and approved.